Hong Kong and Beijing are set to revise a free trade pact for a third time, granting foreign companies established in the financial hub the same preferential mainland market access as domestic Hong Kong firms, according to Secretary for Commerce and Economic Development Algernon Yau Ying-wah.
Under the proposed amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement, foreign firms that manufacture goods in the SAR will be eligible for zero-tariff entry into China, provided their products meet the criteria for "Made in Hong Kong" origin, Yau said at a radio program on Monday.
The city has pledged to continue to pursue the comprehensive upgrade of the CEPA in its first Five-Year Plan announced last month, with a view to deepening cooperation with the mainland services sectors, as well as further expanding the mainland market access and liberalized areas.
Yau also said the territory is very close to the Association of Southeast Asian Nations, which has been its third-largest destination of outward direct investment for four consecutive years, with a stock of HK$671.2 billion.
The two sides signed an amendment to their bilateral investment pact on Sunday, extending equal footing to Hong Kong firms alongside local and foreign competitors across 10 members of the bloc.
Hong Kong plans to expand offshore trade and promote homegrown brands globally to revitalize its textile sector, rather than seeking to bring low-cost manufacturing back to the city, Yau said.
The Policy Address announced earlier that the government will establish a task force led by Yau on high-quality development of the textile and fashion industry in areas including innovation and technology, fashion design, supply chain management, sustainable development and brand promotion, as well as nurturing talent.
